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Difficulty:
75%
(hard)
Question Stats:
52%
(01:57)
correct 48%
(02:13)
wrong
based on 128
sessions
History
Date
Time
Result
Not Attempted Yet
Storeys &co. is a construction company that was setup just a couple of years back while Floors Inc. is a well-established construction company. Both these companies pay the same daily wage to each labor. However, being a well-established one, Floors has employed a higher number of daily labor and has built more houses in the last year than Storeys did. Since only daily labor are involved in construction activities at both the companies, Floors must have spent more on construction costs last year than Storeys did.
Which one of the following considerations works best in strengthening the argument?
(A) The bonuses given to the workers of Floors Inc. to commemorate the anniversary of the company far outmatch that given to workers of Storeys&Co. (B) Storeys &co. has focused primarily on building apartments while Floors Inc.’s main focus has been on building exotic independent houses. (C) Daily labor at Floors Inc. are hired from a reputed and well-established contractor in the city whereas Storeys &Co. has been hiring from a contractor new in business. (D) The accountant who handles the books of both the companies revealed that the annual budget allocated for the company expenses is higher at Floors than at Storeys. (E) In its haste to compete with Floors Inc., Storeys & Co. compromises on the quality of construction material by sourcing it from cheaper sources.
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Storeys &co. is a construction company that was setup just a couple of years back while Floors Inc. is a well-established construction company. Both these companies pay the same daily wage to each labor. However, being a well-established one, Floors has employed a higher number of daily labor and has built more houses in the last year than Storeys did. Since only daily labor are involved in construction activities at both the companies, Floors must have spent more on construction costs last year than Storeys did.
Which one of the following considerations works best in strengthening the argument?
(A) The bonuses given to the workers of Floors Inc. to commemorate the anniversary of the company far outmatch that given to workers of Storeys&Co. (B) Storeys &co. has focused primarily on building apartments while Floors Inc.’s main focus has been on building exotic independent houses. (C) Daily labor at Floors Inc. are hired from a reputed and well-established contractor in the city whereas Storeys &Co. has been hiring from a contractor new in business. (D) The accountant who handles the books of both the companies revealed that the annual budget allocated for the company expenses is higher at Floors than at Storeys. (E) In its haste to compete with Floors Inc., Storeys & Co. compromises on the quality of construction material by sourcing it from cheaper sources.
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Floors is well established while Storeys is new. They pay same daily wage to labour. Floors had more daily labourers and had constructed more houses last year. Only daily labor are involved in construction activities at both the companies
Conclusion: Floors must have spent more on construction costs last year than Storeys did
The conclusion talks about "construction costs". Only two parameters are considered - cost of daily labourers and number of houses built To strengthen the argument, we need to point out why it is more likely that Floors indeed had higher construction costs.
(A) The bonuses given to the workers of Floors Inc. to commemorate the anniversary of the company far outmatch that given to workers of Storeys&Co. Are bonuses considered a part of construction cost? May be, may be not. Let's move on.
(B) Storeys &co. has focused primarily on building apartments while Floors Inc.’s main focus has been on building exotic independent houses. Does construction cost vary as per the kind of house? No idea. Let's move on.
(C) Daily labor at Floors Inc. are hired from a reputed and well-established contractor in the city whereas Storeys &Co. has been hiring from a contractor new in business. Both pay the same daily wage so this doesn't impact our construction cost.
(D) The accountant who handles the books of both the companies revealed that the annual budget allocated for the company expenses is higher at Floors than at Storeys. Budget allocated is irrelevant. How much is actually used is the point in question.
(E) In its haste to compete with Floors Inc., Storeys & Co. compromises on the quality of construction material by sourcing it from cheaper sources. Storeys construction material is cheaper than Floors. Then it certainly makes it more likely that Floors construction cost is higher. This strengthens our argument.
Answer (E)
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Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
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